There are many people here providing suggestions, but I also would consider some reading. I suggest checking out Dave Ramsey’s book Total Money Makeover. He touches on many of your questions.
I’ve done a cursory look at long term care rates and it appeared to me that the monthly premium you’d pay at 60 was the same whether you started the policy at 50 versus 59. Unless there’s a policy that reduces the monthly premium as you age based on when the policy began then you’re likely much better off investing that money when younger? Since these premiums can be paid from an HSA, I’d prefer to load up there for the future.
I actually think I have that book that I got for Christmas one year. I think I’m gonna pull the trigger and move the money into my fidelity account and let it draw from SPAXX and invest into VTI on red days Like Today. It’s really hard not to look at the overall charts. Yes there are Years better than other and years where it’s flat or red but overall I don’t think it’s going to hurt unless everything just crashes and never returns. I had just graduated in high school in 08 and remember those bad economy years but they rebounded. Same in 15 I think it was and it rebounded. Covid same thing. i just need to figure out a good portfolio and not just VTI.
For me, there's only one way to invest but several ways to trade. For investing long-term: vti, vxus and bnd(if in a nontaxable account) vteb if taxable. Find your allocation for comfort and keep your core no matter what comes. Buy a few stocks (not a material amount compared to your core) to trade outside to keep an edge or skin in the game.
If you’ve purchased strong Medicare advantage or supplemental insurance and have a healthy SS payment plus pensions and/or other sources of income from retirement savings, (I’m talking about pushing you above IIRMA limits level) then I think it’s going to be very rare to get wiped out due to long term care IMO. If someone knows differently, please educate me so I don’t make a mistake. TIA
Also, you can use Fidelity's Cash Management account, and the only way they sweep it into SPAXX or a similar MMF is if you exceed the FDIC limitations. That would mean a lot in that cash account, though, as they have several program banks that participate to increase the FDIC. I have it for a "dump errthang therruh wen I win the lottery" account. HAHAHAHAHA Then Imma hahr and fahr moho as my CPA.
I started paying into a LTC policy in my 50s. It's a little pricey, but it doubles as term life if I don't use it for LTC. Mine's with Trustmark and was offered through my employer.
Regular bond interest (bnd) is taxable at ordinary rates if held in a taxable brokerage account. Municipal bonds (vteb) are not taxable in a regular taxable brokerage account, but pay less. It makes a difference when your tax bracket is around 24% and up and you're buying bonds inside a taxable brokerage account. The after tax return on a tax free bond in that situation could be higher. So, the idea, if an allocation to some bonds is appropriate, is to keep regular bond interest inside a nontaxable account and keep nontaxable interest inside a taxable account. In short, bnd(taxable interest) in your ira, vteb (nontaxable interest) in your taxable account.
Over the long term, USA stocks outperform everything else. However, they are sky high today. Would probably be smart to do two things:
I understand the tax side of the bonds but we the return percentage on bonds so low why go into bonds Unless the are paying dividends which may be the case. I don’t want to be taxed on anything else. I’m sick of taxes. I paid in 46k in taxes this year but haven’t gotten everything ready for my CPA yet. Hoping to get another positive return this year.
Bee there and done #2 when I was playing around. Yea not going down that road again. If I knew the what I know now I would be looking really good. I think my initial jump into the market was beginners luck though. I’ve not really looked into international stocks. So I don’t know what’s good or bad there.
There have extended periods of time when bonds have outperformed stocks. Also periods of time when international stocks have outperformed US stocks. A well diversified portfolio would include some bonds and international stocks. How much of each category is an individual choice. It's generally undestood young people dont need as much in bonds as their time frame for getting through market pull backs and crashes is longer. Older folks, who need the income now, usually want more bonds for safety. There are other folks who have so much money, they can ride out any market storms, and dont hold bonds. Most retirement funds in 401k's are in target date funds that allocate it for you. The allocation changes as you get older. There are some general rules of thumb but always exceptions for individual situations.
